FST Corp. Announces 24 Percent Revenue Growth for First Half of 2025

Core Viewpoint - FST Corp. reported significant revenue growth in the first half of 2025, driven by increased sales in the OEM sector, despite experiencing a net loss due to rising operating expenses and one-time costs related to its public listing [1][3][8]. Financial Performance - Revenue for the first six months of 2025 reached $22,193,432, marking a 24% increase from $17,829,745 in the same period of 2024 [1]. - Gross profit margin improved to 46.0% from 43.4% year-over-year, attributed to higher-margin product sales and enhanced operational efficiency [2]. - The company incurred a net loss of $5,827,047, or $(0.13) per share, compared to a net income of $77,617, or $0.01 per share, in the prior year [3]. - Total operating expenses rose by $3,357,809, or 40%, primarily due to increased personnel costs and marketing expenses [3]. - Loss from operations was $1,529,247, an increase from a loss of $644,225 in the previous year; however, adjusting for one-time expenses, the operating income would be approximately $220,000, an improvement of about $870,000 [4]. Cash Flow and Liquidity - As of June 30, 2025, cash and cash equivalents were $6,802,368, up from $5,098,420 at the end of 2024 [5]. - Net cash used in operating activities was $1,091,950 for the first half of 2025, contrasting with net cash provided of $1,420,385 in the same period of 2024 [6]. - The company believes its current liquidity and cash flows will be sufficient to meet operating requirements for the next 12 months [7]. Strategic Outlook - The CEO expressed optimism about continued sales momentum, driven by a new product line launch in Q4 and plans to expand OEM business and distribution channels in Southeast and East Asia, as well as Europe [8]. - The company anticipates that all listing expenses related to its merger will be accounted for by the end of 2025, potentially enhancing its bottom line in 2026 and beyond [9]. Company Background - FST Corp., founded in 1989, specializes in manufacturing and selling golf club shafts and related items, with a strong presence in the golf equipment market [9][10]. - The company's products are utilized by golfers at all levels, including professionals in major golf associations, and it aims to expand into under-tapped markets like the PRC [10].